Olympus confirms rumoured job losses in restructuring

Camera firm will axe 2,700 and close factories

Scandal-hit camera firm Olympus has announced a five-year plan to turn itself around, including axing 2,700 workers and merging or getting rid of some of its 30 factories.

Rumours of the restructuring started circulating a couple of weeks ago, but Olympus wouldn't comment at the time.

The Japanese company said it would be laying off 2,700 staff members or seven per cent of its workforce as well as closing some of its factories.

"We aim to strengthen our cost competitiveness by restructuring through elimination and consolidation approximately 40 per cent of the 30 production sites currently operating around the world by fiscal year ending March 2015," Olympus said in a canned statement.

The camera maker has been in trouble since its former CEO Michael Woodford uncovered accounting irregularities that turned out to be evidence of fraud. Olympus had been juggling money in creative ways for years and once it was discovered, the firm had to correct its accounts.

The new figures for the firm are not very impressive, so Olympus is now trying to "restore its financial health", as it put it.

Woodford was let go from his position as CEO during the time that it all kicked off at the firm and he had launched legal action against his dismissal. Olympus said today that it had agreed to give Woodford £10m to settle the case. ®